The invention pertains to digital data processing and, more particularly, to methods and apparatus for optimizing determination of markdown schedules for goods sold by multiple retail sites. The invention has application, by way of non-limiting example, in facilitating pricing decisions by retailing chains and other enterprises.
Markdown pricing is the retailers' remedy for stagnant inventory. It can help move aged inventory off the shelf at the end of the selling season and/or make room for better selling items in the middle of the season. The difficulty retailers face is knowing when and how much to bring prices down. Markdowns that are too early or too severe will result in loss of profit, just as will those that are too late or too cautious.
Woo, “Markdown Management” (U.S. Patent Publication 20030229502A1, Dec. 11, 2003), assigned to the assignee hereof, suggests a markdown methodology that calls for estimating the price elasticity of sales of an item and, based on that, determining the maximum gross margin that can be attained for the item. That figure is then used in connection with setting or evaluating markdown scenarios for the item.
Grant, “Price Decision Support” (U.S. Patent Publication US20030028437A1, Feb. 6, 2003), also assigned to the assignee hereof, suggests employing a user interface to display markdown price recommendations that will achieve optimal gross margins. The user inputs proposed modifications to the recommendations and, thereby, investigates their impact, e.g., on gross margin.
While the above and other markdown technologies of the assignee have achieved widespread praise and acceptance in the industry, there remains room for improvement. Such is the case, by way of example, in determining markdown pricing for regional and national retailing chains, which may have tens or hundreds of stores, each selling hundreds or thousands of items. Prior art methodologies for determining markdown schedules for that many items across that many stores can require significant processing power and/or time.
An object of this invention, then, is to provide improved methods and apparatus for digital data processing. A more particular object is to provide such methods and apparatus for markdown scheduling.
A related object of the invention is to provide such method and apparatus as speed markdown pricing for regional, national and international retailing chains, among others, with a multitude of retail sites and/or selling a multitude of items.
Still another object is to provide such methods and apparatus as can be readily implemented in existing and future business process systems, automated or otherwise.